Strict new measures to back employment tribunal payments
New enforcement measures are to be introduced to make sure that employers pay the full amount of any tribunal awards.
Under the regime, employers who fail to pay claims awarded against them at an employment tribunal could face losing their business assets, the Ministry of Justice has said.
Figures suggest that only 53 per cent of employees granted awards for unfair dismissal, equal pay and workplace discrimination have been paid in full. Some 39 per cent have received no payments at all.
To give the law more potency, High Court enforcement officers are to assume the extra duties of policing employment tribunal awards.
As a result, employers who do not meet the terms of tribunal judgments could have stock, plant, machinery and office equipment seized so that the sums owing can be paid.
Jack Straw, the Justice Secretary, said: “I am determined to ensure that employees awarded settlements following a dispute get their dues paid. Our research shows as many as four employers out of ten are not paying up leaving individuals with money owed to them, which is completely unacceptable, especially if they have lost their job.
“That is why we have introduced these new measures to ensure that people get what they are owed, and remind those not willing to pay of the consequences of their actions.”